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Tuesday, 02 December, 2008, 21:40 GMT | more >>

SembCorp burned by forex losses



By Upstream staff 

Singapore’s SembCorp Marine said today a number of unauthorised foreign exchange transactions made by one of its directors had cost the company about $165 million in unrealised losses.

SembCorp said director of group finance Wee Sing Guan carried out various transactions on the account of wholly-owned subsidiary Jurong Shipyard.

Wee has been relieved of his duties at SembCorp and has resigned his directorships of a number of subsidiaries, including Jurong Shipyard.

The company said it had taken steps to prevent the entry of any further unauthorised transactions and has obtained legal representation to prepare for any claims against both SembCorp and Jurong Shipyard.

SembCorp said it had received mark-to-market information on the foreign exchange transactions from the various banks involved.

Based on that information, the estimated loss has been put at $165 million if the transactions are valid, not including a sum of about $83 million that Jurong Shipyard paid to one of the banks before the unauthorised transactions were discovered.

SembCorp said it was also investigating which of the transactions were unauthorised and whether monies already paid can be recovered.


Tuesday, 23 October, 2007, 05:31 GMT  | last updated: Tuesday, 23 October, 2007, 07:30 GMT

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